Title 40 — Title 40

With respect to industrial development property for the establishment or expansion of an industrial or research enterprise as defined in paragraph b. of subdivision (10) of Section 40-9B-3, the governing body of a municipality, county, or public industrial authority shall not gra…

REPEALED BY ACT 2023-546, EFFECTIVE DECEMBER 1, 2028 UNLESS EXTENDED BY AN ACT OF THE LEGISLATURE. This chapter shall be known and may be cited as the Brownfield Development Tax Abatement Act. History: (Act 2004-245, p. 334, §1.)

REPEALED BY ACT 2023-546, EFFECTIVE DECEMBER 1, 2028 UNLESS EXTENDED BY AN ACT OF THE LEGISLATURE. The Legislature recognizes the importance of recovering and reusing previously utilized property to the well-being of the people of the state. The Legislature also recognizes that i…

REPEALED BY ACT 2023-546, EFFECTIVE DECEMBER 1, 2028 UNLESS EXTENDED BY AN ACT OF THE LEGISLATURE. For purposes of this chapter, the following words and phrases shall have the following meanings: (1) ABATE, ABATEMENT. A reduction or elimination of a taxpayer’s liability for tax. …

REPEALED BY ACT 2023-546, EFFECTIVE DECEMBER 1, 2028 UNLESS EXTENDED BY AN ACT OF THE LEGISLATURE. (a) Noneducational ad valorem taxes, construction related noneducation transaction taxes, except those construction related transaction taxes levied for educational purposes or for …

REPEALED BY ACT 2023-546, EFFECTIVE DECEMBER 1, 2028 UNLESS EXTENDED BY AN ACT OF THE LEGISLATURE. (a) Subject to the geographical or jurisdictional limitations specified in subsection (b), the governing body of a municipality or a county may grant abatements of all of the taxes …

REPEALED BY ACT 2023-546, EFFECTIVE DECEMBER 1, 2028 UNLESS EXTENDED BY AN ACT OF THE LEGISLATURE. (a) Subject to the limitations set out in Section 40-9C-5, any person who proposes to become a private user of brownfield development property or of a major addition thereto may app…

Brownfield Development Property. REPEALED BY ACT 2023-546, EFFECTIVE DECEMBER 1, 2028 UNLESS EXTENDED BY AN ACT OF THE LEGISLATURE. Notwithstanding any other laws, and subject to the limitations set out in Section 40-9C-5, the gross proceeds of the sale to, or the storage, use, o…

REPEALED BY ACT 2023-546, EFFECTIVE DECEMBER 1, 2028 UNLESS EXTENDED BY AN ACT OF THE LEGISLATURE. The Department of Revenue shall adopt all necessary rules, regulations, and orders needed to implement and administer this chapter. History: (Act 2004-245, p. 334, §8.)

(a) The Brownfield Development Tax Abatement Act, Chapter 9C, of Title 40, commencing with Section 40-9C-1, is repealed effective December 31, 2028, unless extended by an act of the Legislature prior to that date for no more than five additional years. (b) The repealing of the in…

This chapter shall be known and may be cited as the “Alabama Economic Incentive Enhancement Act of 2007.” History: (Act 2007-199, p. 234, §1.)

(a)(1) The legislative intent of this chapter is to provide incentives necessary to attract very large projects which shall generate a substantial number of jobs and economic growth for the citizens of Alabama. (2) This chapter is intended as minimum code and the Department of Re…

(1) CAPITAL COSTS. Costs as defined in subdivision (2) of Section 40-18-190. (2) CAPITAL CREDIT. An amount defined in subdivision (3) of Section 40-18-190. (3) CONSTRUCTION RELATED TRANSACTION TAXES. The sales and use taxes defined in subdivision (3) of Section 40-9B-3. (4) QUALI…

(a) For the entities that qualify under this chapter, an abatement shall be allowed for ad valorem taxes. Such abatement shall follow the provisions and definitions of Chapter 9B of this title with the following exceptions: (1) The maximum exemption period as provided in subdivis…

For purposes of this chapter only, the following terms shall have the following meanings: (1) BASE YEAR. The taxable year immediately before the taxable year in which property first becomes qualified property under this chapter. (2) BASE YEAR VALUE. The value of the property used…

(a) Notwithstanding any other law of this state, qualified property shall be entitled to an abatement of state property taxes provided the conditions of this section are satisfied. (b) In lieu of paying the state property tax increment on qualified property, any owner of qualifie…

This chapter shall apply to qualified structures throughout the State of Alabama. History: (Act 2013-241, p. 579, §1.)

As used in this chapter, the following terms shall have the following meanings: (1) CERTIFIED HISTORIC STRUCTURE. A property located in Alabama which is certified by the Alabama Historical Commission as being individually listed in the National Register of Historic Places, eligib…

Certification; Fees; Report to Legislature. (a) The commission shall develop standards for the approval of the substantial rehabilitation of qualified structures for which a tax credit is sought. The standards shall take into account whether the substantial rehabilitation of a qu…

This article shall apply to qualified structures throughout the State of Alabama. History: (Act 2017-380, §1.)

As used in this article, the following terms have the following meanings: (1) CERTIFIED HISTORIC STRUCTURE. A property located in this state which is at least 60 years of age, unless the structure is a historic structure located within the boundaries of a National Monument or Par…

Report to Legislature. (a) The commission shall develop standards for the approval of the substantial rehabilitation of qualified structures for which a tax credit is sought. The standards shall: (i) take into account whether the substantial rehabilitation of a qualified structur…

Credits. (a) The state portion of any tax credit against the tax imposed by Chapter 18 for the taxable year in which the reservation is allocated to a project or the certified rehabilitation is placed in service shall be equal to 25 percent of the qualified rehabilitation expendi…

(a) Recapture of any of the credit shall apply against the taxpayer who utilizes the credit, and any required adjustments to basis due to recapture, shall be governed by Section 50 of the Internal Revenue Code. (b) In the taxable year the certified rehabilitation is placed in ser…

Owners or their duly authorized representatives may appeal any state official decision, including all preliminary or final reservations, approvals, and denials, made by the commission, committee or the department with regard to an application and rehabilitation plan submitted und…

The tax credits authorized by this article for the substantial rehabilitation of qualified structures shall not be available to owners of qualified structures that submit an application and rehabilitation plan after December 31, 2027. No action or inaction on the part of the Legi…

The commission shall promulgate by October 1, 2017, any and all rules and regulations necessary to implement this article. Applications for the reservation of tax credits shall be accepted beginning November 1, 2017. History: (Act 2017-380, §8.)

October 1, 2026.] AMENDED BY ACT 2026-209, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE. (a) There is established the Historic Tax Credit Evaluating Committee, which shall review qualifying projects, approve credits for projects, and rank projects in the order in which…

(a) The state portion of any tax credit against the tax imposed by Chapters 16 and 18, for the taxable year in which the certified rehabilitation is placed in service, shall be equal to 25 percent of the qualified rehabilitation expenditures for certified historic structures, and…

(a) Recapture of any of the credit shall apply against the taxpayer who utilizes the credit, and any required adjustments to basis due to recapture, shall be governed by Section 50 of the Internal Revenue Code. (b) In the taxable year the certified rehabilitation is placed in ser…

Owners or their duly authorized representatives may appeal any state official decision, including all preliminary or final reservations, approvals, and denials, made by the commission or the department with regard to an application and rehabilitation plan submitted under Section …

The tax credits authorized by this chapter for the substantial rehabilitation of qualified structures shall not be available to owners of qualified structures that submit an application and rehabilitation plan after May 15, 2016. No action or inaction on the part of the Legislatu…

The commission shall promulgate by September 1, 2013, any and all rules and regulations necessary to implement the provisions of this chapter. Applications for the reservation of tax credits shall be accepted beginning October 1, 2013, but no tax credit may be credited prior to t…

AMENDED BY ACT 2026-550, EFFECTIVE JUNE 1, 2026. SEE ACT FOR REVISED LANGUAGE. For purposes of the chapter, the following words and phrases shall have the following meaning: (1) APPROVED ACTIVITY. The conduct of an activity that is predominantly any one or more of the following: …

(a) For any qualifying project, an abatement may be allowed for ad valorem taxes and construction related transaction taxes. (1) The abatement of construction related transaction taxes shall be subject to and shall follow the procedures, provisions, limitations, and definitions o…

This chapter shall be known and may be cited as the Alabama Rural, Agribusiness, and Opportunity Zone Jobs Act. History: (Act 2021-492, §1.)

As used in this chapter, the following words shall have the following meanings: (1) AFFILIATE. An entity that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with another entity. For the purposes of this subdivisi…

(a) Upon receipt of an allocation of funds pursuant to Subtitle C of Title III of the American Rescue Plan Act of 2021, the department shall cause the SSBCI funding to be deposited in the SSBCI fund. (b) Within 30 days of the approval of the state’s application for federal funds …

(a) Within 30 days of certification of a growth fund, the department shall enter into the SSBCI loan agreement with the growth fund and segregate for draws by the growth fund in the SSBCI fund an amount of SSBCI funding equal to the SSBCI loan awarded to such growth fund. (b) A g…

(a) A growth fund shall forfeit its management fee, the SSBCI loan shall be immediately due and its subordination immediately revoked, and remaining draws on the SSBCI loan shall be forfeited if: (1) Within 12 months of the closing date: a. The growth fund does not invest 100 per…

(a) Each growth fund shall submit a report to the department on or before the fifth business day after the first anniversary of the closing date prior to program exit and include all of the following: (1) A bank statement evidencing each growth investment. (2) The name, location,…

The department shall report to the Legislature beginning in 2023, pursuant to Section 40-1-50 and rules adopted by the Department of Revenue, providing an assessment of the incentives allowed in this chapter. History: (Act 2021-492, §7; Act 2024-403, §1.)

(a) The department may adopt rules to implement and administer this chapter. (b) The department shall issue all forms and notices required by this chapter in accordance with the requirements of this chapter. History: (Act 2021-492, §8.)

Under Subtitle C of Title III of the American Rescue Plan Act of 2021, the United States Treasury has been appropriated certain funds to use for the support of private businesses in each of the states. Each state is given the opportunity to apply for a certain amount of these fun…

Related Transaction Tax Unabated. [Effective June 1, 2026.] Upon the granting of an abatement pursuant to Section 40-9B-4 or 40-9G-2 during the applicable exemption period: (1) One mill of the state’s abated noneducational ad valorem taxes shall be unabated. The local tax collect…

Nothing in this chapter shall impair, restrict, or alter any abatement agreement granted prior to June 1, 2026. The provisions of this chapter shall apply prospectively to new abatements granted on or after June 1, 2026. History: (Act 2025-84, §2.)

Confidentiality of Information; Rulemaking Authority. [Effective June 1, 2026.] (a) The Department of Revenue shall provide the Department of Commerce with a copy of each application, resolution, and abatement agreement, including any amendment, granted under Section 40- 9B-4 or …

2026.] Section 40-9I-2 shall apply uniformly to all eligible taxpayers and shall be implemented in a manner that complies with all applicable provisions of the Constitution of Alabama of 2022, as amended. History: (Act 2025-84, §4.)

The probate court of each county may order the sale of lands therein for the payment of taxes assessed on the lands, or against the owners of the lands, when the tax collector shall report to the court that he or she or the holder of a tax lien issued pursuant to Acts 1995, No. 9…

If on account of illness or other good and sufficient cause the tax collector is unable to attend any term of court at which any of the causes are triable, his or her deputy may attend in his or her stead and produce the tax book and the record of tax lien sales kept pursuant to …